There are many different loan programs out there for you to apply for and benefit from. But when you choose a conventional loan program you will need to come up with at least 5% of the home’s purchase price as a down payment before you will be considered for the loan.   Depending on the purchase price of the home, 5%, and sometimes as much as 15 % can be a lot of money. Many of us don't have money lying around, and so we assume that we cannot think of home ownership. To provide a solution to this problem the government created FHA. The FHA insured loan is basically for the low-income borrower.

The FHA loan has boosted home construction numbers and home ownerships. The FHA insures the loans so the lenders have some security. With an FHA loan you can get into a new home for as little as 3% of the purchase price as a down payment and in some cases it could be even less.

To make the home purchase economical, the FHA loan also has limits on closing costs so that you cannot be charged excessive fees by the lender or the broker. In the conventional loans there are not any limits as to what you can be charged in the way of closing costs. Thus, you can save thousands of dollars in closing costs.

Another great way to purchase a home is through an FHA insured loan.  There are other FHA home construction loans also which can be used to   make the process of purchasing a home even more affordable.